Watches II Jean-Claude Biver has turned Blancpain and Hublot into major brands. He explains why his marketing is different.
He is the perfect showman. However, his business is not gags and dazzling effects, but elegant watches. And his world is not the small stage in the Swiss Jura, but the international high-end consumer goods market. Last year, Jean-Claude Biver generated a turnover of 250 million francs with his Swiss watch brand Hublot. 46 million of this is profit. He took over this gold mine in 2004, but his Hublot, with prices ranging from 14,000 Swiss francs to record auction prices of one million euros, is not made of gold or heavy platinum, but has a rubber strap and a case made of feather-light magnesium. The watch is - "The Art of Fusion" - a combination of past and future. And where two worlds collide, something new can sometimes emerge with the significance of a "big bang". In January, Jean-Claude Biver presented his successful watch marketing concept to the Zurich Advertising Club. The presentation was highly entertaining. After all, Biver was a member of the Swatch Group Executive Board for twelve years until 2003, where he was Head of Communications. His most important message now on his own behalf: "I must always do the opposite of what the specialists advise." A concrete example to illustrate this: if a sailing team can set off on a race with a slower boat five minutes after Alinghi's start, it will never catch up with Alinghi if it sails in its wake. But if the slower boat heads in a completely different direction, there may be a wind blowing that could help it to victory. "I always want to go in a direction where the others are not. That way I can win," Biver revealed. And applied to watches: "If I'm somewhere where nobody is, I have peace and quiet. I can speak very quietly and people can hear me. If I go where everyone is shouting loudly, nobody hears me."
In 1982, the son of a shoe retailer and economics graduate bought the luxury brand Blancpain after his first jobs at Audemars Piguet. Biver paid 18,000 francs for it, as the brand had not been on the market since 1959. But the label dated back to 1735, so why not relaunch this rarity with a quartz movement? All specialists in the 1980s would have done it this way, as the development history of other luxury brands shows. Biver did it differently. He had the old mechanical movements dug up once again, produced the only luxury brand at the time without newfangled quartz and was able to sell Blancpain to Hayek in 1992 "at a profit of millions".
Without a lot of money of your own - "because 18,000 francs is nothing" - you can enter this prestigious industry in Switzerland, joked Biver during his presentation. Yet this so-called industry is just a myth. In 2006, the Swiss watch industry generated a turnover of just CHF 13 billion. "This total turnover is the same as Nestlé's profit and perhaps half as much as UBS has to write off as a loss," Biver showed a little show talent again before presenting his next "big bang".
This model series from the Hublot collection is now considered a Swiss watch, but was "founded by Italians" in 1980, as Biver joked. And he also made fun of the fact that the translation of the Hublot brand is "Glubschauge". Who would buy a brand called "Glubschauge"? But it sounds elegant because it's French. And it doesn't matter that the bracelet is made of rubber. Just like the car tires that were still burned with a great stench back then. But even expensive bracelets made of cheap rubber are not the norm. And so Biver finally bought the Hublot brand in 2004, after it had become less and less fashionable since the mid-nineties and had recently posted a loss of 2.6 million francs. Why?
"In the luxury market, you can see that someone who spends 4,000 francs on a watch hardly ever buys a second one in the same year. The customer still doesn't come back in the third year." Someone who buys a watch for 20,000 francs and likes it, "buys at least three or four more after three months". You don't learn that in marketing school. But Biver has experienced it first-hand with Blancpain. Nowadays, you no longer buy a watch to be able to tell the time. "I feel sorry for the poor guy who spends 20,000 francs to be able to tell the time. That's why you have a cell phone."
With a watch in the luxury segment, people want to afford something different. "They want to fulfill a dream and buy a status symbol to do so." Just like the beautiful women who cruise through the flat streets of Paris in a Range Rover, even though they don't need four-wheel drive there. "A watch also shows who I am, what upbringing I have, what culture and what personality."
For this reason, after buying the Hublot brand, Biver had a watch built on which you can no longer see the time at all. His "All Black" had a black dial, black numerals and black hands. Biver called the creation "The Invisible Visibility". At the following watch fair, 2,727 pieces were ordered. However, Biver only had 250 delivered. Since then, the "All Black" has been available on the Internet for 22,000 francs.
The further development with "Big Bang" now aims to combine the tradition of watchmaking with the world of high-tech. A mechanical movement as before. But completely new materials. When Father Biver used to pick up a Blancpain, he could feel the richness. "Wow, platinum." The watch was heavy. When his son, who has "grown up in the 21st century", picks up a Hublot watch, he says: "Wow! Magnesium." The watch is light. Young people today experience that everything of value is small and light. Bicycles made of carbon and car brakes made of ceramic - this is the new world of high-end products. Hublot thus brings together materials "that do not normally belong together". This could "open up a new universe" for the future of the industry.
Jean-Claude Biver also brings together two seemingly completely incongruous worlds in advertising for his Hublot. He is sponsoring the popular Euro 08 football event with the luxury brand Hublot. Who is going to buy a 20,000 franc watch in the stadium? - Pop stars have their own football clubs, bank generals like to be celebrated as the owners of a successful team, as does the heiress of a chemical multinational and even a former Italian president. The stadiums are built by star architects. The players are sold for tens of millions. "Why shouldn't I sponsor Hublot in this environment?" Biver replied to the astonished marketing people from the advertising club. The myth of a brand is not created where it is sold. "Every child in the favelas of Rio knows the Ferrari brand. For millions of TV viewers, this car is a dream." But hardly anyone can afford such a car. This makes it all the more fulfilling for those who have really made it.
But Biver wouldn't have to be Biver if he took a completely different approach here too. A few days ago, he announced that he would be donating sponsorship space worth three to five million euros in the Euro stadiums to a foundation against racism. Posters from "Unite Against Racism" will flicker across screens worldwide instead of Hublot during the games.
Andreas Panzeri